This Commissions Guide article relates to Connective Solutions Residential loans. Articles related to other CHL products can be found here:
Connective will maintain this guide to the best of its ability but cannot guarantee that the information within is complete, and/or in line with the latest guidance and policies of the lender. If you believe anything is missing or inaccurate, please contact us.
Residential Loans
Contents:
Commission Rates
Prime Loan and Non-Conforming Loan applications received on and from 23rd May 2023
| ex GST | inc GST |
Upfront | 0.65% | 0.715% |
Trail - Year 1 & 2 | 0.15% | 0.165% |
Trail - Year 3+ | 0.18% | 0.198% |
Non- Conforming Loan applications received before 23rd May 2022
| ex GST | inc GST |
Upfront | 0.6% | 0.66% |
Trail | 0.2% | 0.22% |
Prime Loan applications received before 23rd May 2022
| ex GST | inc GST |
Upfront | 0.70% | 0.77% |
Trail | 0.15% | 0.165% |
Notes & Definitions
Upfront commission payments are calculated at the time of settlement, net of offset and redraw accounts.
Upfront commissions will not be paid until 75% of the total loan amount is drawn down.
Initial Fee is defined as Upfront commission paid to a broker.
Trail commissions will be calculated on the outstanding balance of each settled loan as at the last business day of each calendar month and payable on the 15th day of the following calendar month (or the next business day after the 15th of the month if the 15th is not a business day in Sydney).
No trail will be paid if any security in respect of the loan is enforced
Trail fee in respect of a loan will be suspended if the loan is sixty (60) days or more in arrears at any time. Once any arrears are rectified, the trail will commence again but will still not be paid for the arrears period.
If a broker, who is not the original broker who referred the loan to CHL Solutions by Pepper, introduces a variation or principal increase to a loan, all trail fees for that loan will cease to be paid to the original broker.
If a broker is terminated due to fraud, forgery or misrepresentation, the broker’s entitlement to all trailer fees ceases.
Clawbacks
Clawbacks are applicable whether as a result of an early repayment or otherwise.
Prime and Non-Conforming Loan Product applications received from and including 23rd May 2022
Period | % Clawback |
0 - 12 months | 100% |
13 - 18 months | 50% |
Prime Home Loan Product Applications received before the 23rd May 2022
Period | % Clawback |
0 - 12 months | 100% |
13 - 18 months | 50% |
Non-Conforming Loan Product Applications received before 23rd May 2022
Near Prime Clear product, that is classified as Non Confirming, the Prime product clawback rules apply
Period | % Clawback |
0 - 6 months | 100% |
7 - 12 months | 50% |